Accouitng treatment of appreciation in shares held as stock

This query is : Resolved

tarun (Querist)
Follow

01 August 2010 I am a dealer in stock.(Holding Shares as stock in trade)
I have 100 shares of company A
I have 200 shares of company B

NOw both company A and B gets amalgamated and formed a new company C
I was alloted 200 shares of new company C

I was holding Company A and B shares as closing stock, now what is the accounting treatment of new alloted shares of C and old shares of Company A and B

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
Follow

01 August 2010 Only cost of shares in company A and company B would be the cost of shares in company C.

There would be no change in valuation.

CA Ujjaval Desai

CA Ujjaval Desai (Expert)
Follow

01 August 2010 Generally the Stock is Valued at Cost or Net Realisable Value which ever is Lower(AS-2). Hence you have to value the stock at cost price only as the market value is more than the cost price

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

kavita goel

avulaandcopdrl 2023

divakar podaturu

Ashok Atluri

CA Reshma prabhu

Subscribe Now

Accouitng treatment of appreciation in shares held as stock

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA